The markup is the difference between the cost of a good and the price it's sold at. The higher the markup, the more you can discount and still make a profit.

For example, a typical store might sell you a $400 suit and offer 25% off. In Jos A Banks' world, they'd rather price a suit at $1,000 and offer it at 70% off.

Either place you shop, you pay $300 for a suit that might be of identical quality to the one sold at the other place.

But the $1,000 initial price tag gives the perception of higher quality. And the 70% discount gives the illusion of a great deal. Combine those two things and it's no surprise why the bargain-hunting American male would be seduced by Jos A Bank's offering.

All it took was a little psycho-mathematical salesmanship.

And how's business at Jos A. Bank?

Well, their recent quarter was a bit disappointing. But long-term, business has been good. Sales and profits have been climbing for years.

And more importantly, the gross profit margin has trended up from 58% to 62%.over the last five full fiscal years.